The price of Bitcoin reached an unprecedented high of $108,000 on December 17, 2024, but has since declined by over 10%. Recent data reveals a significant drop in both Bitcoin exchange inflow and miner outflow, indicating less selling pressure on the cryptocurrency.
According to CryptoQuant, Bitcoin exchange inflows experienced a peak of 98,748 BTC on November 25, 2024, after a couple of months of increased activity. Throughout December 2024, these inflows decreased, ranging from 11,000 to 79,000 coins daily.
This decrease was mirrored by a reduction in miner outflows, suggesting that Bitcoin miners are now under less pressure to liquidate their holdings for operational costs. Notably, miner outflows peaked on November 11, when 25,367 BTC were sent to exchanges as Bitcoin’s value soared to approximately $88,000. More recently, on January 1, 2025, 5,489 BTC were transferred by miners, followed by 5,748 BTC on January 2 and 2,133 BTC on January 3.
Market analysts have offered insights into potential future Bitcoin performance. Bitfinex experts anticipate that in January, Bitcoin could trade in the $95,000 to $110,000 range. However, Axel Adler, a market analyst, emphasized that a boost in daily trading volume is required for Bitcoin to overcome current resistance levels and for a significant upward movement. He noted that while the market remains bullish and not overheated, sufficient trading volume is necessary to ignite a strong upward trend, particularly as the market recovers from the holiday season.
Additionally, inflows into Bitcoin exchange-traded funds (ETFs) have shown positive signs of recovery, with $900 million recorded on January 3, 2025, marking a rebound from several days of substantial outflows. This reversal indicates renewed interest from traditional finance and institutional investors in Bitcoin.
